NVG.WA WACC - Weighted Average Cost of Capital

The WACC of Novavis Group SA (NVG.WA) is 8.8%.

The Cost of Equity of Novavis Group SA (NVG.WA) is 8.75%.

The Cost of Debt of Novavis Group SA (NVG.WA) is 10.70%.

	Range	Selected
Cost of equity	7.60% - 9.90%	8.75%
Tax rate	21.70% - 25.60%	23.65%
Cost of debt	7.00% - 14.40%	10.70%
WACC	7.6% - 9.9%	8.8%

WACC

NVG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.34	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.90%

Tax rate	21.70%	25.60%
Debt/Equity ratio	0	0
Cost of debt	7.00%	14.40%

After-tax WACC	7.6%	9.9%


Selected WACC	8.8%

NVG.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for NVG.WA:

cost_of_equity (8.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.34) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.